Digital banking provider PT Seabank Indonesia, which is a subsidiary of Sea Ltd., had just released its financial performance report for 2022. The report noted that the bank successfully booked a profit of IDR 59.5 billion for Q4 2022.
SeaBank also recorded a net profit of IDR 269.2 billion for Fiscal Year 2022, which is equal to 186% compares to its IDR 313.4 billion loss in 2021.
One of several factors that influenced Seabank’s success was the increase of lending activities with the value of loan disbursed reaching up to IDR 15.9 trillion in 2022. The number is equal to 160% increase compared to the IDR 6.1 trillion recorded in 2021.
The race is on
Since 2021, digital banking industry in Indonesia has been growing significantly as new players scramble to raise funds by offering attractive time deposit rates to customers.
Currently, most of digital banks activities are conducted through channelling of loans to P2P and BNPL players.
A report published by Google, Temasek and Bain noted that Indonesia’s digital economy value is expected to grow to USD 124 billion in 2025. The country is predicted to become the most valuable internet economy in the Southeast Asia region.
Other major players in the digital bank industry aside from Seabank are Bank Jago Tbk PT, PT Bank Neo Commerce, and Allo Bank Indonesia Tbk PT. Each of these banks have also recorded profits in Q4 2022, and in some cases FY2022, but all are forecasting to be profitable in FY2023.
